Sheela Foam Limited has announced the acquisition of Furlenco (House of Kieraya), making it a subsidiary effective October 1, 2026. This strategic move diversifies Sheela Foam into the furniture rental and branded furniture space, aligning with its vision of becoming a comprehensive B2C portfolio company. The company also reported strong financial results for Q2 and H1 FY27, with revenue growth of 19% and 22% respectively.
Sheela Foam Acquires Furlenco, Enhances B2C Portfolio
Sheela Foam Limited has completed the acquisition of Furlenco (House of Kieraya), with the entity becoming a subsidiary effective October 1, 2026. This significant strategic move marks Sheela Foam’s expansion into the furniture rental and branded furniture sectors, transforming it into a full B2C portfolio company with leadership in mattresses, foam, and now furniture rentals.
Strong Financial Performance in Q2 & H1 FY27
The company also announced its financial results for the second quarter (Q2) and first half (H1) of FY27, showcasing robust growth. For H1 FY27, consolidated revenue grew by 22% YoY to ₹2,077 crore, driven by strong performance in mattress and foam segments. Operating EBITDA saw a 23% increase to ₹200 crore, and PAT surged to ₹109 crore, a 6.6x jump from the previous year.
In Q2 FY27, consolidated revenue increased by 19% YoY to ₹1,045 crore. Operating EBITDA remained flat at ₹87 crore, while PAT grew significantly to ₹46 crore, a 4.7x increase compared to Q2 FY26. This performance was achieved despite challenges such as sharp increases in raw material prices and a shifting festive season.
Operational Highlights
Key operational highlights for H1 FY27 include an 11% growth in the mattress segment and a 26% growth in the foam segment. For Q2 FY27, revenue growth was led by strong performance in mattress and foam segments, alongside growth in Spain and Australia. The company also noted growth in e-commerce sales on brand.com and an increase in mattress value sales, despite a slight decline in volume for the mattress segment due to a shift in the festive season.
Chairman’s Commentary
Mr. Rahul Gautam, Chairman & Managing Director, commented on the results, highlighting the company’s resilience amidst a disruptive environment with rising raw material prices. He emphasized the successful response through balanced price increases and advertising, crossing the ₹1,000 crore revenue mark for the quarter and protecting profitability. The acquisition of Furlenco is expected to position Sheela Foam as a larger, more diversified group.
Source: BSE
